Alight Solutions 401k Index: June 2017 Observations

June was the lightest trading month this year for defined contribution plan investors, according to the Alight Solutions 401(k) Index™.

June observations:

On average, 0.013% of balances traded each day
There were no days of above normal ¹ trading

Inflows and outflows during the month:

39% of inflows went to international funds and 23% went to target date funds
Outflows were primarily company stock, stable value, and small U.S. equity funds

Asset classes with most trading inflows in June

	Percentage of inflows	Index dollar value ($ mil)
International funds	39%	$90
Target date² funds	23%	$53
Large U.S. equity funds	20%	$47

Asset classes with most trading outflows in June

	Percentage of outflows	Index dollar value ($ mil)
Company stock	34%	$77
Stable value funds	28%	$64
Small U.S. equity funds	21%	$48

“

It’s not uncommon to see lighter than normal trading activity when the market is increasing...it comes as no surprise that few participants made trades.

Rob Austin

Director of Research, Alight Solutions

June investment portfolios:

At the end of June, 67.0% of balances were invested in equities, up marginally from 66.9% at the end of May
67.1% of new contributions were invested in equities, down slightly from 67.2% in May

Asset classes with largest percentage of total balance at end of June

	Percentage of balance	Index dollar value ($ mil)
Target date funds	25%	$47,495
Large U.S. equity funds	24%	$44,898
Stable value funds	11%	$21,779

Asset classes with most contributions in June

	Percentage of contributions	Index dollar value ($ mil)
Target date funds	45%	$503
Large U.S. equity funds	19%	$215
International funds	8%	$88

The Alight Solutions 401(k) Index™ statistics for the period ending June 30, 2017:

Asset classes with most contributions in June

	June
Total transfers as percentage of starting balance	0.12%
# Fixed days	11 (50%)
# Equity days	11 (50%)
# Above normal¹ days	0

June market observations
In June, capital markets saw primarily positive results, with sluggish fixed income returns and strong U.S. small cap equity returns.

Returns for common indices

	June
Bloomberg Barclays U.S. Aggregate Index	-0.1%
S&P 500 Index	0.6%
Russell 2000 Index	3.5%
MSCI All Country World ex-U.S. Index (net)	0.3%

Members of the media: please contact MacKenzie Lucas for questions about the Alight Solutions 401(k) Index™.

A “normal” level of relative transfer activity is when the net daily movement of participants’ balances as a percent of total 401(k) balances within the Alight Solutions 401(k) Index™ equals between 0.3 times and 1.5 times the average daily net activity of the preceding 12 months. A “high” relative transfer activity day is when the net daily movement exceeds two times the average daily net activity. A “moderate” relative transfer activity day is when the net daily movement is between 1.5 and two times the average daily net activity of the preceding 12 months.
Target date funds also include the amounts in target risk funds for companies who do not have target date funds. The amount in the target risk funds is less than 10% of the total.